The euro rises back after ECB officials’ comment that global inflation is of a temporary nature.
Indeed, the pair is consolidating, which is usually the case following a strong directional movement.
The RSI has recovered into the neutrality area. Its divergence indicates a slowdown in the sell-off. 1.1925 is the immediate resistance. Its breach would lead to the psychological level of 1.2000, where sellers are likely to double down.
A break under 1.1850 may trigger a 100-pip sell-off towards 1.1750, critical daily support.
